If you are planning to buy a house or getting into the market, you must have come across something called home appraisals. A home appraisal is an inevitable part for anyone who is looking to apply for a home loan. It can make or break the home buying deal by revealing the true worth of the property in the current situation. There are some third-party individuals who do not belong to either party involved in the transaction, carrying out an unbiased property appraisal. Therefore, a residential appraisal is essential not to pay more than the value of a property.    

What is a home appraisal?

A home or residential appraisal is determining the true value of a property by certified professionals in an unbiased manner. The home appraisers are usually third-party individuals who are in no way involved with the seller or buyer. They are accustomed to giving a true representation of the home’s worth. Individuals who are confused about whether home appraisers are the same as home inspectors must be assured that both of them are entirely different.  

Residential appraisers take into consideration the basic amenities surrounding the property like grocery stores, hospitals, restaurants, gyms, malls, etc., along with the home interiors. On the other hand, the home inspectors are more concerned about how functional the property is in terms of plumbing, HVAC, etc. 

How is the value of a residential property determined?

For a residential appraisal, a trained and licensed appraiser visits the property for inspection. The inspection is done based on various factors like the condition of interiors and exteriors, carpet size, existing renovations, or other amenities. Additionally, other factors that determine the property’s value are the available surrounding properties to compare. The properties sold recently in the nearby surroundings also have a huge impact on the selling value of your property. However, the value of the property may be a little higher if it offers additional amenities like a swimming pool, semi-furnished living space, and much more. The residential appraisers determine the value of your property based on how its functional condition stacks up to the competition.

Why is it essential to get a residential appraisal?

As a buyer, a home appraisal ensures that you do not pay more than the worth of the property. A residential appraisal keeps the sellers from raising their property’s price beyond a certain limit. This helps the buyers to save some bucks, preventing them from falling into a trap for unduly expensive homes. Furthermore, the lending companies also grant the loan amount based on the true value of the property determined by a certified appraiser. Since the appraised value of the property is its fair market price. 

The buyers can also negotiate deals with their property owners and keep from overpaying for the property. The owners must abide by the new appraised value of the home; otherwise, they are likely to lose the potential buyers.  

Hire a trained and certified appraiser to carry out an unbiased residential appraisal of a house!